Senin, Oktober 27, 2008

Chinese Energy Ministers visits Baghdad to start implementation of oil contact-spokesman

Iraq’s Ministry on Sunday announced the Chinese Energy would visit Iraq in November to activate service deal developing a giant oilfield in Wassit province.

“Chinese Energy Minister with a high-level delegation would visit Iraq in November to sign the contract of al-Ahdab oilfields” Oil Ministry spokesman Assim Jihad told Aswat al-Iraq.

“The contact came into action after being endorsed by the council of Ministers in August, “he noted “The Chinese part must start installing the equipment in two months after approving the contract.

The Iraqi government and the China National Petroleum Corporation have signed a contract in Beijing that could be worth up to $3 billion.

Under this contract, the Chinese company will provide technical advisers, oil workers and equipment to help develop the al-Ahdab oil field southeast of Baghdad.

The spokesman highlighted “the oilfield production for three years would compensate the deterioration in Iraqi oil flow”

It is expected the oilfield production would reach 2000 oil barrel per day (bpd).

The 22-year contract is a renegotiated version of a 1997 agreement between China and Iraq under Saddam Hussein. The original contract included production-sharing rights, but under the new contract China will be paid for its services but will not share in profits.

The oil produced from the al-Ahdab field will help Iraq, a nation where electricity is in short supply; fuel a planned power plant that would be one of the largest in the country.

For China, the deal offers a lucrative foothold in one of the most oil-rich countries in the world.

(Voices of Iraq)


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